Suppose that the demand function for bagels is expressed as the following:
B = 90 - 20 P8 + 5 Pr - 5 Pcc + 0.1I , where B = quantity of bagels, Pr = the price of tortillas, P8 = the price of bagels, Pcc = the price of cream cheese, and I = income.
A. Are bagels and tortillas substitutes or complements? ----------
B. Are bagels normal or inferior goods? ---- -----
C.If the price of bagels is $2, the price of tortillas is $1, the price of cream cheese is $1, and income is $750, what is:
-the (own-) price elasticity of demand for bagels?
- the cross-price elasticity of demand for bagels (with respect to a change in price of cream cheese)? ----- --
-the income elasticity of demand for bagels? -----------